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The promotion held in Japan for investment opportunities in mining Peru offers, for the country’s good economic conditions, resources and respect the environment.

The official of the Ministry of Energy and Mines (MEM) described the very productive visit after a trip that visited northern Japan, a former mining area, to see the work in the field of Japanese companies in the sector.

He also met with representatives of four major Nipponese company with interests in the Peruvian mining industry, including Mitsui Mining, Mitsubishi Corporation and Sumitomo Corporation, which found interest in increasing their presence.

Deputy Minister of Mines said that the Japanese are interested in traditionally abundant resources in Peru, such as zinc or copper, as well as other rare metals such as titanium or gallium.

The official stressed that another objective of the trip was to sign a memorandum of understanding with the Corporation for Oil, Gas and Metals of Japan (JOGMEC), in order to receive support Nippon in the treatment of waste generated after the close of mining, such as acid water.

“While in Peru we still have many mines in operation, will be closed and the operation is as important as a good end,” he said after his five-day visit to Japan.

The operations of the Antamina Mining Company drove growth of six percent annual gross domestic product (GDP) in the Ancash region, said his manager, Corporate Affairs, Gonzalo Quijandria.

“The Antamina income growth rates of both the regional and the national economy, since in recent years the GDP of Ancash grew six percent annually, while the national GDP did an average of seven percent, “he said.

However, he pointed out that there is still room to improve indicators of Ancash, through private investment. In early January Antamina announced an investment of 1,288 million dollars to expand its mining facilities and mineral processing capacity at its site located in the San Marcos district, province of Huari (Ancash).

He said the expansion in domestic economic activity will increase on average by 0.2 percent annually, and this represents approximately 4.524 million dollars in present value (accumulated from 2009 to 2029).

Similarly, the expansion and ongoing operations of Antamina generate an annual average impact (direct and indirect) equivalent to 0.8 percent of GDP in Peru (2009 – 2029), an impact that will be around 18 percent of the GDP of Ancash, remarked . With this project, between 2009 and 2029 Ancash receive a total of 2.723 million dollars in mining royalties and 530 million in royalties in the period 2016 to 2029.

You could also hire more than 225 additional workers in the area of ??direct influence, he said.

The average yearly expenditure on goods and services purchased in Ancash is 119 percent higher than 2009 and will remain canon resources available according to the performance expected. On the other hand, said the Antamina operations have already generated positive impacts on the area of ??direct influence in contrast to non-mining areas comparable.

Thus, 18 percent of households have access to clean water, ten percent of households have access to electricity, and the poverty rate is less than six percentage points. Finally, the amount of monthly per capita expenditure increased by ten percent (27 soles) and the malnutrition rate is less than seven percentage points.

The mining and hydrocarbon sector in Peru would grow 2.9 percent this year, compared to growth in 2009, before the start of new projects and recovery of production.

He said the hydrocarbons sub sector advance 19.6 percent in 2010, natural gas production in Block 56 in Camisea, before the start of natural gas exports liquefaction (LNG) to Mexico and the increased production of natural gas (2.3 percent).

While metal mining sub-sector would grow 0.7 percent, driven by the recovery of zinc and lead, as it is expected that mining and Volcano The Quenchless resume production levels stimulated by the recovery of international prices of metals .

He said that the mining and hydrocarbon sector ended 2009 with a slight increase of 0.4 percent over 2008.

Meanwhile, metal mining fell 1.4 percent by the temporary closure and adjustment of production in the mining units to lower demand and lower prices for industrial metals due to the international crisis.

The production of zinc, iron, lead and molybdenum recorded falls of 5.9, 14.4, 12.5 and 26.5 percent respectively.

For its part, the hydrocarbons sub sector closed 2009 with an increase of 16.1 percent as a result of increased production of natural gas liquids (20.7 percent) and natural gas (2.3 percent).

Mining must also meet environmental standards, while respecting private property and protect the rights of people living within these areas, He said that monitoring of small-scale mining has been transferred to regional governments as part of the decentralization process, however, the MEM coordinates with the authority of Piura.

Therefore, in His city has installed a decentralized office to manage the issue directly, he said.

During a working visit to Piura, Sanchez explained that to start a mining operation must follow several processes, starting with obtaining the concession title, and followed by the permission of the owners of surface land, communities or individuals. Then continue the preparation of environmental impact assessment (EIA) that guarantees the protection of the environment and, finally, if any, should respect the architectural heritage of the nation.

“After fulfilling all these obligations only on mineral owner can initiate a scan. There have been cases with only the title of grant is to explore, which is illegal and is what causes many of the problems in the country, “he said.

On the Rio Blanco mining project, the minister said Rio Blanco Copper Company, in charge of the project is complying with everything required by law, and is currently developing the respective EIA.

He said the company must continue this process through workshops, hearings and consultations.

He said that there is opposition from other agents because they are uninformed they do not know that the nearest population center to the project is seven hours, issue that should be part of the information issued by the company.

He noted that Rio Blanco is a project that can develop in a sustainable way, respecting the rights of communities and generating benefits for nearby towns and the region. Sanchez visited the storage facility in Sechura Bayovar, and after a brief tour of the spring and control areas met with officials and employees of pipeline operations.

The engineers explained in detail the operation of the pipeline that carries crude oil to the pier, passing through a system of turbine flow measurement and the operation of tankers.

Also it was learned that all installations are protected with fire protection systems, including launchers and sea water spray or foam under pressure, which operate on and under the pallet. Submerged dock facilities have a system of protection.

In early January Antamina announced an investment of 1,288 million dollars to expand its mining facilities and processing capacity in mineral mining site located in the San Marcos district, province of Huari (Ancash).

“It has been estimated that this increased investment will drive growth of the company’s production by 38 percent, and they have also generate higher transfers for income taxes totaling $ 1.900 each additional” she said.

He said that the taxes paid by Compania Minera Antamina bordering the Treasury $ 500 million a year.

The company noted that in 2008 it announced a 77 percent increase in its reserves of mineral deposits in the reservoir.

The new mineral reserves were incorporated into a feasibility study completed in 2009, the same as possible to evaluate the options for expanding the company announced today.

The expansion of reserves include increases in mineral processing capacity, the same will rise 38 percent to 130 thousand metric tons (MT) daily, increase reserves by 77 percent processed to 1.100 million tons and extend the life span of the mine until 2029.

He indicated that this project will create many jobs directly and indirectly at the national and only in the construction phase (2010 – 2011) will generate 1.450 direct jobs.

The expansion will also generate approximately 1,700 additional jobs on average (direct contractors) with respect to the scenario without enlargement (period 2009 – 2029), and also guarantee employment for six years (2024-2029).

Also, the current operations of Antamina have brought positive impacts in the areas of influence, through fee and royalties to municipalities and the regional government of Ancash 3.317 million soles in the period 2001 to 2009.

Mining operations have also generated $ 164 million for the Antamina Mining Fund (WWF) between 2007 and 2009.

The Project Quilavira Gold Exploration, located in Tacna, Mining Metallurgical Engineering and Technology (ITMM), which consists of 5.100 hectares.

ITMM, Peruvian exploration company and consulting firm, acquired ownership of Australia’s Newcrest in a bidding process.

MIRL signed an option agreement to acquire 100 percent ownership of ITMM, subject to payment of $ 50.000 at the time of granting the relevant authorization by the Peruvian government.

For this the government should publish a supreme decree is required when companies registered abroad seeking to acquire exploration licenses within 50 miles of the international border of Peru.

He said before starting the exploration on this property will require the negotiation of a Surface Rights Agreement with the local community.

MIRL’s chief executive, Courtney Chamberlain, said Quilavira represents a strategic opportunity for long-term exploration of highly prospective area.

“Today we are well positioned in Peru, where our Ollachea project, and Quilavira consistent with the development of our business interests in selected districts,” he said.

The main purpose of exploration Quilavira corresponds to a change in an area of ??approximately 1.200 meters by 300 meters.

Sampling by Newcrest identified an area (200 x 200 meters) of anomalous gold mineralization (more than one gram of gold per tonne) in the western part of the alteration zone, he said.

Today we are already the third country in terms of receipt of mining investments, we have moved from sixth to third, and the Annual Convention of the Prospectors and Developers Association of Canada (PDAC) 2010 is an excellent opportunity to tell the world what is Peru, “he said.

Perez is part of the Peruvian delegation to participate at the PDAC 2010 to be held from 7 to 10 March in the city of Toronto (Canada) who chairs the Energy and Mines Minister Pedro Sanchez, and is composed of representatives of public and private sectors of the mining sector.

He said that the Peruvian delegation also held a small exhibition of gastronomy and tourism in Peru among the 28,000 attendees are expected to have for the PDAC 2010.

“It’s a great opportunity to say everything that has advanced Peru, reforms that have occurred, the level is now Peru, on protection of investments, investment attraction, a legal framework attractive to convince investors “he told CPN Radio from Toronto.

He recalled that mining investors today are much more “exquisite” about where they choose to invest and Peru is doing it as a destination for such investments.

“We will make a presentation primarily on why Peru is an excellent opportunity to invest, from the infrastructure we need, the legal and regulatory framework that we have with respect to investments”, he said.

For his part, President of the Organizing Committee of the Peruvian presence in the PDAC 2010, Michael Cardozo, said he will seek to take advantage of a great opportunity to promote not only the potential of the mining sector but also of other investment opportunities in Peru.

“Mineral exploration in the whole world has been growing in recent years and reached its peak in 2008, where he invested in the world the sum of 14.400 million, at that time we were in sixth place in the ranking world, “he said.

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The mining project Pucamarca, located in the district of Palca (Tacna), generated by mining royalties concept of a total estimated income of more than 60 million new soles during his lifetime.

“The project will be supplied from underground wells located on the Sulphur River Basin, which has no connection with Caplina basin, which caters to Tacna,” he said. Also have a duration of ten years (seven and three leach operation) and the water recirculated constantly, so do not generate tailings and effluents.

It will also develop educational and health projects in neighboring communities and Vilavilani Palca, he said.

Minsur also informed the Council of Mining, highest authority of the Ministry of Energy and Mines (MEM) in a review of mining projects are concerned, confirmed the approval of Environmental Impact Assessment (EIA) project.

He said that this entity confirmed the validity of Executive Resolution No. 256-2009-MEM/AAM, which in August 2009 approved the EIA of this project, following due process and without any void. The Pucamarca EIA approved by the General Directorate of Mining Environmental Affairs (DGAAM) MEM Minsur states that you must install a underground concrete screen 200 meters long, he said.

He argued that this measure will strengthen and be very effective in protecting Huaylillas South Tunnel, thus eliminating any possibility of leaking and will join other safety components envisaged in the project design Pucamarca.

Including geomembranes, layers of clay and filter detectors, which guarantee the protection of the environment.

“Also, the provision of DGAAM states that do not involve blasting to be a risk to the infrastructure of the South Tunnel and Channel Huaylillas Uchusuma, Bellavista the fault is not active and that the elements of airborne no risk “he said.

Minsur said he will proceed to implement all of the environmental management measures identified in the EIA, to develop a mining project with the highest standards of industrial technology, environmental security and ongoing cooperation with neighboring communities.

On 21 December last year the regional government passed an ordinance declaring as an area of ??non-admission of mining claims throughout the territory of Cusco, and came into force a few days ago. “This is a measure that is not within the law nor the constitution and we are evaluating the steps we take, where it is fitting that this rule is repealed,” he said.

He reiterated that the next actions of the ministry will seek to safeguard the future investments that would like to place in the area, because according to published legal device, the investments to date are located in the Cusco region would not be affected, only those lands that are currently not have any concessions.

“What is clear at this point is that the regional government has no such power to ban and we will have to act accordingly,” he said. In that regard, he stressed that it is necessary that each player knows the national government and act according to their skills and does not affect the powers of others. He said that currently, there are a lot of mining concessions granted in the region of Cusco, which represent 0.6 percent of the total area of ??the region. “I think the real problem is a confusion on the part of the regions on that term are generated exploration rights after the State provides a mining lease to an investor,” he said.

He explained that often mistakenly think that these rights are given automatically, when it is not. On the contrary, before any intervention, the holder of a mining concession must obtain permission from land use, which means to agree with the surrounding community. “Additionally, you must file an Environmental Impact Study (EIA) in order to mitigate any impact that could be generated with the activity, and should also be checked the absence of archaeological resources,” he said.

First semester, energy integration agreement signed between Peru and Brazil

The Ministry of Energy and Mines (MEM) said the energy integration agreement between Peru and Brazil signed in the first half of this year, as there is great progress in this regard. Last December, the presidents of Peru, Alan Garcia, and Brazil, Luiz Inacio Lula da Silva urged the Energy Ministers of both countries to submit a draft agreement bilateral energy integration in the short term.

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The vice president of corporate affairs of the company, Pablo de la Flor, said at March 26 last, the Antamina Mining Fund (AMF) of $ 133.4 million executed under the solidarity mining program.

“This amount represents 81.4 percent of the total fund and was destined to social projects aimed at improving the quality of life for residents of Ancash, especially those with fewer resources,” he said.

He explained that to date the largest amount invested up to $ 54 million (40 percent of the total) was allocated to the implementation of social infrastructure such as water, sanitation, electricity, telephone, rural roads, irrigation, and projects institutional strengthening.

“Similarly, 32.1 million was invested in various programs to improve health conditions, especially in children under three years and pregnant women, and 40 million investment in education initiatives and productive development,” he said.

De la Flor said that by 2010, the FMA will continue to promote health projects, and develop an adult literacy campaign.

“In the area of ??productive development will consolidate the initiatives currently working and will continue with the Project Reduction and Poverty Alleviation (PRA), aiming to generate additional sales of $ 3.1 million and 1.174 new permanent jobs “he said.

He recalled that the FMA is invested resources in the region Ancash, Huanuco Llata ??district, located in the province of Huamalíes.

The FMA manages two funds, a local character (including the poorest districts and close to the operations of Antamina) and a regional that includes the other provinces and districts.